The euro traded within 0.3 percent of a nine-month low before reports this week that may show growth in the region weakened and inflation slowed, adding to signs the bloc’s economy is struggling to recover.
Europe’s shared currency fell yesterday after data showed German investor confidence slumped more than analysts forecast, following figures last week that indicated Italy returned to recession. The yen stayed lower following a two-day slide, as Bank of Japan officials said they will maintain unprecedented stimulus for as long as necessary and Japan’s economy shrank for the first time since September 2012.
“The European economy is slowing, with Italy entering a recession,” said Naohiro Nomoto, an associate for foreign-exchange trading at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “I’m more biased to sell euro on rallies as the economy is weakening.”